Unemployment Taxes — Increase in 2010

Employers should anticipate increases in their unemployment taxes in 2010 and possibly beyond, whether or not their business has had any claims. State unemployment trust funds have fallen to such a low level that rate increases may be required to rebuild their balances even when employment improves. Some states have had to borrow money from the federal government under the Federal Umemployment Trust Act (FUTA) to cover their current obligations will need to pay this money back with interest.

November 2009 Georgia’s unemployment rate rose to 10.2% even during a seasonal employment period. Also in November, the number of Georgians receiving umemployment benefits has risen 11.5% over November 2008. Year-to-date 2009, Georgia Department of Labor has paid out $1.6 billion in umemployment benefits. Although Georgia has received authorization to receive federal funds, they had not done so as of November. Georgia estimates that approximately 15% of employers will see a “modest” increase in their 2010 premiums.